The latest employment figures for the Irish economy from the Central Statistics Office (CSO) contained some positive news. Despite a string of lay-offs in major companies, job numbers in the tech sector at 123,200 are slightly ahead of the same month last year and only 2,000 lower than they started the year. Elsewhere, the jobs figures were broadly positive too, though it is clear that the period of strong job gains is over, with total employment holding steady in recent months rather than increasing.
The tech sector – measured in the CSO data as information and communications – has gone through a difficult period, with a string of redundancy announcements from major service-based players such as Google, Microsoft and Meta.
The sector had over-expanded – internationally and in Ireland – and is going through a period of retrenchment. The fact that overall job numbers are holding despite this is encouraging and suggests that some of those who lost their jobs have found new employment.
Elsewhere, the figures show a slowdown in the rapid expansion in job numbers seen in recent years. The number of people at work at over 2.4 million in June was 2.6 per cent ahead of the same month last year, but the jobs total has looked to be topping out in recent months and was unchanged in June compared to May.
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Outside technology, sectoral trends are mixed. The finance, insurance and real estate sector has grown strongly over recent years and most other areas remain in positive territory. The one negative is a monthly fall-off in employment in June in the accommodation and food sector, where job numbers are also slightly down year on year.
There is also some weakness appearing in employment in younger age groups, particularly those under 25. Given the high level of employment of younger people in the hospitality sector, these trends may be related.
One of the encouraging things coming out of the pandemic lockdowns was the strength of the jobs market. Expectations of a big hangover of high unemployment, particularly among younger people, proved misplaced. In fact, job shortages have appeared to support earnings growth for lower paid employees.
As economic growth eases, this offers a complicated picture for policymakers. There are still critical shortages of workers in some areas, notably construction. The modern sectors appear to remain robust, though are unlikely to deliver the kind of growth seen in recent years. The outlook for the more traditional sectors, including hospitality, remains uncertain.
In recent months, job numbers have risen for older employees and fallen for those under 40 years of age. It is too early to call this a trend, but it needs to be watched in the months ahead as the jobs market moves into a new phase.